Emerging-market medtech companies have also found a less
expensive alternative to negative-pressure wound therapy, which in
mature markets is a popular way to
promote the healing of acute and
chronic wounds. The traditional
pump- and vacuum-based therapy
sold by Acelity and Smith & Nephew requires special equipment,
which can cost more than $10,000
a unit, and a dressing that costs
nearly $900, yet the procedures are
not covered by most public medical insurance in China.

WuHan VSD Medical Science &Technology has created an ap-proach that makes use of thewall-suction equipment commonin large hospitals in China. Hos-pitals need not buy the expensivepumps, medical practitionersneed not carry special equipmenton their rounds, and patients paylower out-of-pocket expensesthanks to a Chinese dressing thatcosts about $400 less. (In response,multinationals are adjusting theirproduct portfolios.)

INNOVATIVE GO-TO-MARKETAPPROACHES

Emerging-market medtech companies have found alternative
routes to reach patients when multinationals have tied up traditional
channels.

In India, Transasia has taken
advantage of channel segmentation to become the number one
IVD provider. In large metropolitan areas, the company has
invested in an in-house sales force
of about 400 and a service force of
about 200. These reps cover more
than 30,000 labs. To achieve even
broader coverage, Transasia has
a network of 350 non-exclusive
dealers that sell small-ticket items,
generate leads, and work with a
group of subdealers. Transasia
can afford this channel strategy
because it has lower manufacturing costs than its multinational
competitors, such as Abbott and
Siemens.